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Kenyan Shilling Trades On Stable Note

BY · August 9, 2015 07:08 am

The Kenyan Shilling (KES) closed the weeks’ final trading session on a stable note as it recorded marginal gains against most international peers. The USDKES strengthened by 0.03% to 101.22 (12:30pm GMT) supported by tight liquidity in the money market, which has seen the interbank rate shore up to 22.18% last recorded on Thursday. Nonetheless, we expect pressure to pile on as treasury bills and bond redemptions filter the market with liquidity in coming weeks.

Meanwhile, we may see the USD softening against international peers as U.S. non-farm payrolls rose less-than-expected last month. The U.S. Department of Labor indicated that non-farm payrolls rose to a seasonally adjusted 215,000, from 231,000 in the preceding month whose figure was revised up from 223,000. On the regional forefront, the KES inched lower by 0.55% against the Rand (ZAR) as the peer currency inched up against the USD.

Centum Insurance Cover Well Timed

The market continued its climb against adverse market conditions, as it closed the day with significant gains. The Nairobi Stock Exchange rallied, with the NSE-20 climbing 1.48% to 4415.09 and the NSE All Share Index garnered 2.75% to close the trading day at 150.45. Market capitalisation followed suit as it gained 2.76% to close the trading day at KES. 2106Bn, despite equity turnover still maintaining a downward trend from the previous trading week as it registered a 62.08% decline to KES. 469Mn. The market breadth, an unbiased measure of the market performance showed that conditions improved; as the number of stocks that advanced, 28, failed to outweigh the number of stocks that declined, 14.

Centum Investment (NSE: ICDC) received insurance from the German giant insurer, Munich Re, on its KES. 30Bn geothermal power project; which is expected to produce 140 MW by December 2018. The listed company owns 3.5% of an equity stake in Akiira One; while Ram Energy, Marine Power and Frontier Markets owns the remaining 62.5%. The insurer is to compensate investors in the Akiira One project, should eight wells drilled in Olkaria (Nakuru Country) not produce enough.

Centum Investment mentioned using a fifth of its- KES. 6Bn – bond offer towards the geothermal; as it sets a target to contribute 30% of the funding, while the remaining KES. 27Bn comes from Standard Bank.  This comes at a time when oil prices plummet, below the $50 market price, and explorers forecast a rise in licensing fees; aggregating to deterring potential investors.

Equity Market Highlights

Kenya Commercial Bank Ltd (NSE: KCB) climbed one spots to close as the most traded stock, accounting for 37.37% of the total value traded. Equity Group Holdings Ltd. (NSE: EQTY) was second accounting for 13.61% of the days traded value.

Housing Finance Ltd. (NSE: HFCK) climbed to dominate the top gainers list, scaling 8.33% to KES 22.75. Eveready East Africa Ltd (NSE: EVRD) registered a similar 8.33% gain to KES 3.90, curving in tied as the day best gainer.

Sameer Africa Ltd. (NSE: FIRE) dropped, from the previous day’s top gainer, to claim the day’s top loser, shedding 7.07% to KES 4.60. Car & General (K) Ltd. (NSE: C&G) followed a close second as it retreated by 6.15% to KES 42.00.

Foreign Investor Participation

Foreign investor participation was steady during Thursday trading session accounting for 70.00 % of total turnover against 30.00% local participation. Foreign participants were dominant on the accumulative front; resulting in net inflows worth KES 33.24Mn compared to net inflows worth KES 47.18Mn on Thursday.

Foreign investors accounted for 70.00% of the NSE turnover as compared to 71.91% on Thursday.

Investors engaged in accumulative activities, resulting in net inflows worth KES 33.24Mn relative to net inflows worth KES 47.18 Mn on Thursday.

Kenya Commercial Bank (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 156.18Mn to account for 33.24% of total market activity and 47.48% of foreign activity whilst Equity Group Holdings Limited (NSE: EQTY) followed with a turnover of KES 44.11Mn representing 9.39% of total market activity and 13.41% of foreign activity.

The Nairobi Securities Exchange (NSE: NSE) posted the day’s highest inflows worth KES 18.09Mn whilst Equity Group Holdings Limited (NSE: EQTY) posted the day’s highest outflows worth KES 2.4Mn.

 

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